I think TMF had an agenda because the author had reccoed the previous business management was in, and they got hammered. You have to go back and research that company to realize what went wrong, primarily expiditures for technology developement that never developed and drained the company's cash.
The doctor's from acquisitions can't simply dump their stock because it's restricted, usually one year. Then there's the question regarding the recent round of financing at 2.65 per share? What are they doing? Bagholding? Dumping? Shorting?
Believe me, I am not happy about the current situation, and am not convinced that this will recover, or that management isn't a bunch of incompetent fuck ups who will drive this into the ground. However, maybe they're not, and all will be well.
A few notes. If you go back through their filings, you'll see that they've already raised ALL the cash needed for their 2006 acquisition strategy, and already made most of the acquisitions. The last round of financing provided 10.6 mil cash, and the 2006 plan called for 10 to 12 million with a portion of that to be funded by cash flow. Debt isn't really an issue since very little of it is notes, all warrants and debentures. They have been paying interest and capital on the debs and very few of them have ever been converted to stock, and i doubt those in the last round of financing would enter knowing they were going to be horribly diluted over the next year.
TMF flat out lied when they said PRZ had no cash flow from ops. They actually have had positive cash from continuing ops for 3 quarters and the percentage growth has been exceptional. I personally believe that PRZ needs to stop the acquisitions, focus on organic growth, extinguishing debt, and maintaining profitability for a year, then re-enter another growth phase.
So I'm about 50/50 on whether this is a buy op or debacle, and I'm going to listen carefully to the CC although management has a history of overstating the positives and ignoring the negatives, and read all filings very carefully. I'll also trade, like you, based on technicals until I can get a small profit and leave a much smaller position.
If the whole thing ends up being a disaster, then I'll join whatever class actions are filed, and hope they break up all the practices and sell them off and recoup something down the road after dumping for a loss. If that's the case, then there will be a bounce along the way, and I'll trade it.
If the whole thing ends up being an agenda against the co by TMF, the restatement is the same affecting hundreds of little co's, and the plan is legit, and going forward the co. is going to be profitable and focus on organic growth with cash flow feeding acquisitions (as they stated would be the case by 2007), then this is a tremendous long term buy op as pain management is a great field to be in.
Time will tell, and if it's a loss, won't be the first, won't be the last, and we'll all be a little wiser for the future.
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